Government Ensures KUR Interest Rate Remains at 6 Percent
Jakarta (ANTARA) - The Coordinating Minister for Economic Affairs, Airlangga Hartably, stated that the government ensures the increase in the Bank Indonesia benchmark interest rate, or BI Rate, will not affect the interest rate for People’s Business Credit (KUR), which remains at 6 per cent per annum.
Airlangga explained that the KUR interest rate is determined through a government subsidy scheme for micro, small, and medium enterprises (MSMEs), meaning it does not directly follow changes in the BI Rate.
“The increase in the BI Rate does not change the People’s Business Credit interest rate provided by the government, which is 6 per cent. Therefore, 6 per cent is the subsidized interest rate provided by the government to MSMEs,” he said at the Smesco Building, Jakarta, on Monday.
He emphasised that the government continues to provide KUR interest subsidies to maintain access to affordable financing for MSME players.
Furthermore, Airlangga mentioned that the government is also increasing the KUR disbursement ceiling specifically for the housing sector.
“In fact, the government is increasing the People’s Business Credit specifically for, for example, housing, raising the figure to Rp50 trillion. The interest rate remains at the subsidized KUR rate,” he said.
KUR is a government-subsidised financing programme aimed at expanding access to capital for MSMEs and productive sectors.
The Ministry of MSMEs noted that nationally, as of 25 June 2026, the realisation of KUR disbursement has reached Rp143.2 trillion, or 49.3 per cent of the 2026 target of Rp290 trillion.
This financing has reached approximately 2.2 million MSME debtors, consisting of about 1.1 million new debtors and 511,000 debtors who have graduated to higher business levels.
Meanwhile, the proportion of KUR disbursement to the production sector nationally has reached 64.1 per cent.
The government targets KUR disbursements of Rp290 trillion in 2026, aimed at 1.3 million new debtors and 1.1 million graduated debtors, with at least 65 per cent of the financing allocated to the production sector.